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All You Need To Know About The Benefits Of Working Capital Finance

Many business owners believe that financing from banks and other lenders will always be the best option to fund business growth, but that is not always the case. Working capital finance can help your company get the money it needs to meet immediate cash flow challenges. This also allows you to maintain your credit rating and keep control of your assets and debt repayment strategies. Learn more about working capital finance. Determine whether it is the right fit for you. Read this article to learn about working capital finance. [B-01] Defining Working Capital Finance Working capital is the money a company has available to cover its expenses between periods of sales. It can be used for day-to-day operations, long-term investments, or additional working capital loans. Working capital loan interest rate is one of the most important factors in determining how much you will pay in interest on your debt. A low working capital loan interest rate will result in a lower monthly payment, while a high one will lead to higher monthly payments and potentially a higher total cost of borrowing. The primary factor that affects working capital loan interest rates is the length of time between when the funds are borrowed and when they are repaid. The longer it takes for repayment, the higher the rate. Types Of Working Capital Working capital is the amount of money you have available at a given time. There are four types of working capital: cash in hand, accounts receivable, inventory, and current assets. Cash in hand: Cash in hand is the most liquid form of working capital finance because it can be put into use immediately. Accounts receivable: Accounts receivable represent how much customers owe a company for products or services that have been delivered but not yet paid for. Inventory: Inventory stands for products a company has on hand that are ready to be sold to its customers. Fixed assets: The final type of working capital finance is fixed assets, which refer to items like property and equipment that the company owns and may utilise over time. How Does Working Capital Work? A working capital loan is a type of business loan where the finance company allows you to borrow up to 75% of what your inventory, receivables, and other assets are worth. Working capital finance loans have interest rates that vary, depending on the financial strength of your company and what collateral you have for the loan. They can be anywhere from 2% all the way up to 7%. Borrowers are required to repay the amount borrowed plus interest within 90 days. Otherwise, they may face liquidation in order to pay back the debt. As long as the borrower has some sort of collateral to offer (real estate, vehicle, etc.), they will receive a lower interest rate than someone who doesn’t. How To Calculate Working Capital The working capital finance is the total value of all cash needed plus all accounts payable divided by 365 days in a year. Working capital formula: Current assets / Current liabilities = Working capital ratio A lower working capital loan interest rate could save you a lot of money over the life of your business, depending on how much working capital you need and how long it takes to get repaid. The Importance of Working Capital Management Working capital is the difference between a company’s current assets and liabilities. The level of working capital needed varies based on the type of business. Companies need to manage their working capital levels. This is because they have an impact on liquidity and solvency. This, in turn, can have a big effect on the company’s creditworthiness. Working capital finance is determined by several factors. They include credit history, industry type, and the size of the company. There are some reasons why your business might require additional working capital: To fund new projects and equipment: The working capital loan interest rate is usually lower than the company’s credit card debt, so it can be a good way to help fund projects and equipment. They will increase your revenue in the future. As a short-term solution for cash flow issues: Working capital loans are usually paid back in one year or less. So, they’re an ideal short-term solution for companies with cash flow issues. To repay higher-interest debts: If you have more expensive debts such as a car loan, student loans, or credit cards, working capital loans can often save you money in the long run by getting rid of these debts. For inventory financing: If your inventory exceeds what you need on hand to fulfil orders, then you may want to look into inventory financing options. This is because they provide additional liquidity for managing inventory levels during busy periods. [B-02] The Bottom Line Working capital is the fuel that powers a company. It is an amount of money that can be used for operations or investments. They help keep the company in operation. Working capital loan interest rates are typically set at a fixed rate of interest. This is done so that you know how much you will pay over time. Check out more finance-related articles at Piramal Finance.

08-11-2023

Personal Loan

Improve Your Cash Flow by Taking Equipment Loan

When purchasing new machinery, firms often take out what is known as an "equipment loan" to finance the purchase. Loans for equipment are distinct from other types of loans in that the money borrowed may be used on nothing except the purchase of the actual piece of machinery being financed. To ensure that the loan will be repaid, the actual piece of equipment will be used as collateral. This will likely be useful to many company owners who cannot use other security measures. The value of the equipment loan that will be funded throughout the loan will be given greater weight than the borrower’s credit history. [B-01] Equipment Loan will Make Your Cash Flow. Because the timing of spending can greatly impact cash flow, large upfront purchases are a common cause of cash flow issues. However, substantial investments may be necessary if your business needs new or updated machinery to meet rising demand, satisfy expanding customer needs, and keep the money coming in. Thus, many small businesses are forced to make the tough decision of postponing necessary capital expenditures like equipment upgrades and purchases or facing a cash flow crisis. The quickest and most efficient solution to this problem is commercial equipment financing. Instead of making a lump sum payment for the equipment, you can make smaller monthly payments using equipment financing. Your company can acquire the necessary machinery in this way without incurring any serious monetary setbacks. In addition, you’ll have some wiggle room in your working capital, which is always helpful for dealing with the unexpected. Leasing Equipment The Lessor, the legal owner of the equipment loan, grants the lessee, the legal user of the equipment, the use of the asset for a certain period in exchange for periodic payments. The corporation will have to make regular payments to a leasing company to cover the cost of renting the necessary equipment. By leasing, rather than purchasing updated equipment, businesses may benefit without negatively affecting their cash flow. After the terms of the equipment contract have expired, the borrower may do one of three things: The borrower may terminate the arrangement and retrieve the item at any time. Don’t just let the contract expire; extend it and start charging rent for the equipment again. To buy the machinery from the leasing company outright. Financing and leasing equipment has several benefits. You may reap several benefits from applying for an equipment loan as a business owner. That’s what they are: Maximize your cash on hand. An equipment loan may help improve a company’s operational capital when used in place of a large, up-front investment in equipment. Using working capital to purchase equipment may severely restrict a business’s ability to generate cash flow, jeopardizing many companies’ already precarious financial situation. To avoid using operating cash for costly equipment, company owners might instead choose equipment financing. Affordability of Capital Equipment and Tax Advantages of Financing Businesses may often repay equipment loans within the agreed-upon time frames. Most interest paid on equipment loans is tax deductible. Most leasing programs for commercial equipment provide tax breaks, allowing the business owner to write off the lease payment as an operating expense. So, the monthly lease payments may be deducted from the total amount paid during the life of the equipment financing on the annual tax return. Invest in High-Quality Equipment A further benefit of this financing is that it allows businesses to obtain the best and most effective equipment without worrying about how they will pay for it. Many business owners feel restricted when purchasing new equipment because it is expensive, and not all businesses can afford to invest much in it. Equipment finance enables business owners to acquire vital tools without draining their operating resources. Availability of Extra Credit Lines A firm that needs new machinery but doesn’t have the cash to purchase it might apply for business equipment loans and get a lump sum from a lender. However, this might create a cash flow issue if a large amount of the firm-term loan is used to finance the purchase of machinery and tools. You can get the machinery you need with an equipment loan, and if your firm runs into cash flow problems in the future, you can always refinance into a term loan. The procedure for Applying Is Straightforward. Time is money. Therefore, it makes sense for business equipment loans to have an expedited application procedure that may get you funded in as little as 24 hours. But when looking into equipment loans, it’s important to consider the magnitude of the upcoming purchase. Suppose a borrower has strong personal credit, a sign that their company has been profitable for some time and that the funded equipment will retain its worth. In that case, the application procedure may be expected to be extremely fast and uncomplicated. Get Creative with Equipment Loan for Your Small Business. Productivity, as well as the loyalty of customers and workers, may be increased with the right equipment. In addition to utilizing equipment financing to acquire the tools, you need to operate or for major increases to operational efficiency, consider using equipment loans for small pieces of technology that will hugely impact the enjoyment of your customers and employee. Invest in tablets to offer your customers greater agency. When paired with the right app, tablets may become valuable tools that increase customer engagement and facilitate better service. Customers may peruse menu options before heading to the register if your business offers made-to-order meals. Instead of handing out generic brochures, a beauty parlour owner should use tablets to showcase clientele’s style preferences and creations. A flexible POS system is a good idea to boost output. A point-of-sale (POS) system that gives attention to many factors and needs may help your small business earn more money. A smooth checkout process is good for business and will make your customers happy. [B-02] Conclusion Understanding equipment loans and implementing them in your business will improve your cash flow. It has several benefits for both small and large businesses. Consider consulting a reputed institution like Piramal Finance to learn more about how it works. They will provide expert advice on implementing an equipment loan in your business.

08-11-2023

Personal Loan

Know the Piramal Capital & Housing Finance Personal Loan Process

The number of financial institutions that offer personal loans has increased. The terms and conditions with which loans are given have become stricter as well. Due to growing scrutiny, banks have mandated personal loan eligibility requirements. Every applicant has to meet these before they become eligible for a loan. Eligibility is the first step, so knowing how to qualify for a loan can make or break your desire to take one out. In this article, you will read about the eligibility criteria and other details of the personal loan process. It also discusses the qualifying criteria for a five lakh personal loan. [B-01] What Is a Personal Loan? A personal loan is a loan sought by an individual from a financial institution for various purposes. These include paying old debt, clearing medical bills, or buying furniture. For example, an entrepreneur can take a personal loan to finance their expansion. A lender will sanction the fund after checking your loan eligibility. There are many types of personal loans. You may apply for a personal loan for your vehicle, home renovation, education, etc. Check Personal Loan Eligibility You can apply for a personal loan if you are a resident of India and above 18 years of age. You should also have a permanent source of income. These are the most basic personal loan eligibility requirements prescribed by every lender. The loan amount you are eligible to get is limited to Rs 5 lakhs. Other guidelines should be kept in mind while applying for a loan. Lenders have also mandated certain requirements in the personal loan process like identity and address proof. Documents Needed in the Personal Loan Process The documents sought by the lender will be submitted along with the application. These are the documents that will help meet the eligibility criteria set by lenders: Identity Proofs: The applicant’s name should be displayed on the document. You can submit any government-issued photo ID like an Aadhaar or driving license. Age Proof: If the documents are in the applicant’s name, the age proofs are applicable. One can use Aadhaar, Voter ID, Driving Licence, etc. Residential Proof: The address in the application shall not be rented or leased. Although, in some cases, the bank may allow you to use it. Employment Proof: You should prove that you have a stable and regular source of income. It is needed because you will use this income’s funds to repay the loan. Loan Purpose: You can apply for a loan for any purpose. Some lenders may ask you to submit a letter along with your application. The letter must outline the purpose for which you seek the loan and how you plan to repay it. Process of Applying for a Personal Loan A person who wants to take a loan must fill out an application form. It can be obtained from the bank or an NBFC where the loan is offered. On filling out the form, the applicant must mention all details. These include the loan amount, loan purpose, repayment period, and interest rate. The documents mentioned in the personal loan eligibility section must also be provided. If the loan is approved, the interest rate will be mentioned on the form. After submitting the form, the loan application is transferred to the loan department. The loan officer sees the application form and decides if the applicant should be given the loan. The loan officer has the authority to approve or reject the application. The decision will be based on personal loan eligibility. They would also decide the terms and conditions of the loan. When the loan is approved, a formal letter confirming the same is sent to the address in the application. Interest Rate for a Personal Loan in India The type of loan you are taking will determine the interest rate you will have to pay. There are two types of personal loans available in India. One is an unsecured loan, and the other is a secured loan. An unsecured loan has no collateral attached to it, while a secured loan has some asset (such as a car loan) as a security. While applying for a loan, you should decide which type of loan you want. An unsecured personal loan has an interest rate of above 10 per cent. A secured loan has an interest rate of 8 to 10 per cent. Repayment Schedule of Personal Loan The repayment schedule of a loan would depend on the amount you take and the repayment period you choose. The repayment term for a personal loan ranges from one to 15 years. Options to extend it beyond that exist in some loan programs and with certain lenders. The lender would decide the repayment schedule of a loan. It will be based on the borrower’s repayment ability. The repayment will be in the form of EMIs spread over a few years, as agreed between you and the lender. Most personal loans come with a minimum tenure of one year. Banks insist on having this minimum term as they want to make sure that they earn interest. Moreover, in some cases, you may even have to pay the penalty if you are paying before the stipulated time. Doing so causes a loss of interest to the bank. [B-02] Conclusion Now that you know what a personal loan is, the personal loan process, who is eligible for one, and how to apply for one, you are ready to find the best deal on a loan. Before applying for a loan, make sure you know the interest rate. Other terms and conditions of the loan must also be read. You must also check the eligibility details included in the personal loan process. That way, you can make a better decision about whether or not to take out a loan. A good way to do this is to find a lender with flexible loan programs. It includes Piramal Finance, known for excellent services and flexible loan terms.

08-11-2023

Know More

What are bank bonds and what are the benefits of it?

In the finance sector, bank bonds guarantee debts in which the borrower owes the lender a debt for which the borrower is obligated to repay the principal on maturity along with interest at a fixed interval, at agreed terms. These bonds are backed by the government of India and can be subscribed to at any time. Interest can be paid annually or semi-annually. Bonds are a great option for raising funds for a business without giving the investor the right of ownership in the company. Bonds work using a coupon rate, which is a fixed interest rate for the lender and is popularly known as a fixed-income security. For example, if an organization, XYZ Ltd., wishes to raise funds for its distant business requirements, it can take out a loan from the issue of bank bonds. Bonds are a tool for raising business funds for the borrower and a secured and fixed source of income for the lender. In bonds, maturity is when the principal or face value is paid back to the lender. Bonds can be invested in for a minimum of Rs 1,000 and increased in multiples of face value. There is no limit on the maximum investment. Eligibility for investment in Bank Bonds: There are no strict eligibility criteria for applying to bank bonds. Any person who is a resident of India can invest in these bonds. Individually, on a joint basis, or on behalf of a minor, a person can invest in these bank bonds without any restrictions. Features of Bank Bonds: Non-resident Indians cannot invest in these bonds. The maturity period for these bonds is 7 years. The minimum investment amount is Rs 1,000, and there is no capping on the maximum amount. Income earned from these bonds is taxable. These bonds are non-transferable. Premature redemption is available only to senior citizens. Benefits of bank bonds: Low minimum investment: The minimum investment in these bonds is Rs 1,000 and can be increased in multiples of face value. This is one of the reasons why investors prefer bank bonds. Due to this minimum investment, even a person from an economically weaker background with an account in a bank can invest in these bonds. Online/Offline Application: The government has made the application to bank bonds accessible to all through both online and offline mediums. Those who prefer everything online can apply online. Those who don’t have the medium for applying online or aren’t tech-savvy can fill out a form at the branch to apply. No limit on maximum investment: To ensure that investors reap the maximum benefits of these bonds, the government has kept no maximum limit for investment. Those planning to invest a big amount can apply for these bonds. Income or capital appreciation: Investors have a choice to obtain interest income or capital appreciation. Those who choose the interest income option receive interest twice a year, every six months. Those who prefer capital appreciation receive the cumulative amount for interest and principal on maturity. Modes of payment: To make it a feasible and hassle-free process for everyone, payments can be made through cash, DD, cheque, or online. This makes the payment process easy for investors. These are a few reasons why people prefer to invest in bank bonds. If you plan a safe investment with a fixed return, buy bonds like bank bonds. Types of Bonds: Fixed-rate bonds: These bonds provide fixed interest amounts until maturity. Investors earn fixed and guaranteed returns under all circumstances through these bonds. Floating-rate bonds: As the name suggests, the interest rate in these bonds is not fixed but keeps changing. It varies during the tenure, depending on the pre-set benchmarks. Zero-coupon bonds: If you invest in these bonds, you won’t get periodic coupons during their tenure. The investors purchase these bonds at a discounted price, but they receive the par value. Perpetual bonds are debt securities without maturity. In these bonds, investors don’t receive the principal amount but coupon payments until perpetuity. Inflation-linked bonds: These bonds are formed to minimize the impact of inflation on the face value and coupon payments. Convertible bonds: The investors who own convertible bonds can convert them to a fixed number of equity shares in the issuing company at a particular time. Callable bonds are high-coupon-paying securities in which the issuer can redeem them at a pre-agreed price and date. Puttable bonds: The bondholder can return the bond and ask for principal repayment at a pre-agreed date. Out of all these types of bonds, you must choose the one that fits your investment expectations, return expectations, liquidity options, and other factors. Things to consider before finalizing bank bond investment: Before investing in any scheme, you must always know the offerings. Here are a few points to consider before investing in bank bonds. Be sure about your expectations from the investment and compare them with the actual results the bonds can provide. Buy bonds you want to invest in depending on the risk or return in each. Always check the credibility/creditworthiness of the issuer. Before you buy bonds, check their ratings to avoid default in payment. You must have some expectations about the liquidity of your investment. Do compare it with the results. [B-02] Always be an informed investor. Read, analyze, and then invest. If you are planning to invest in bank bonds or RBI bonds, this information will help you understand the basics of these bonds, the types of bank bonds, their features, benefits, and other minute details. Have a safe and fruitful investment!

08-11-2023

Business Loan

Explore India's Leading Government Loan Schemes for MSMEs

If you're looking to start or grow your business, the Indian government offers several business loan schemes that are designed just for you. Whether you're a small shop owner, a startup founder, or running a local manufacturing unit, these government business loans offer quick funding, often without needing collateral. These are not just regular loans they’re PM business loan schemes and MSME loan schemes for new businesses that come with low interest rates, simple paperwork, and faster disbursal compared to banks. Top Government Business Loan Schemes in India MSME Loan in 59 Minutes MUDRA Loan (Pradhan Mantri Business Loan) CGTMSE (Govt Loan Scheme for Business) PMEGP (Startup Loan by Government) SIDBI SMILE Scheme Stand-Up India Scheme PM SVANidhi PM Vishwakarma Scheme Summary of Key Points MSME Loan in 59 Minutes While starting out, individuals often face challanges getting a MSME business loan. MSME Loan in 59 Minutes is one of the fastest government business loan schemes. You can get loan approval within an hour—ideal for those who need working capital or want to scale quickly. Loan: Up to ₹5 crore Interest: Starts from 8.5% Approval: Within 59 minutes Requires: GST, IT returns, and bank records This is perfect for small businesses and MSMEs that want a quick, collateral-free loan under a government subsidy loan for business model. Pradhan Mantri MUDRA Yojana (PMMY) Known as the most popular PM loan scheme for business, MUDRA provides three types of loans—Shishu, Kishore, and Tarun—to suit businesses at different growth stages. Shishu: Up to ₹50,000 Kishore: ₹50,001 to ₹5 lakh Tarun: ₹5 to ₹10 lakh It’s a fully collateral-free government business loan, widely used by traders, shopkeepers, and gig workers. CGTMSE – Credit Guarantee Scheme This govt loan scheme for business makes it easy for MSMEs to borrow without offering property or equipment as security. Loan: Up to ₹5 crore Coverage: 75% to 85% guarantee by the government For: Manufacturing, services, and trading units It acts as a government subsidy loan for business by reducing lender risk, especially useful for first-time borrowers or businesses without assets. PMEGP – Prime Minister’s Employment Generation Programme If you are starting a new business or small factory, PMEGP acts like a startup loan by government. You get funding and subsidy to begin operations. Loan: Up to ₹50 lakh for manufacturing Subsidy: Up to 35% depending on location and category For: New entrepreneurs aged 18+, minimum 8th-grade pass It’s one of the most useful MSME loan schemes for new business owners who want support beyond just money. SIDBI SMILE Scheme SIDBI’s SMILE offers loans for business growth, especially if you’re upgrading equipment or expanding into a new product line. Loan: Starts from ₹10 lakh Tenure: Up to 10 years Focus: 'Make in India' businesses, new-age MSMEs It supports startups and growing enterprises that fall under the government business loan scheme umbrella. Stand-Up India Scheme This PM business loan scheme is focused on helping women and SC/ST entrepreneurs set up greenfield (first-time) businesses. Loan: ₹10 lakh to ₹1 crore Use: For trading, manufacturing, or service Eligibility: First-time entrepreneurs Aimed at creating equal opportunities, this is a strong example of a government business loan for first-time borrowers. PM SVANidhi – For Street Vendors This scheme is part of government subsidy loan for business efforts targeting very small businesses like vegetable vendors, tea sellers, and cart-based shops. First Loan: ₹10,000 Next: ₹20,000 and then ₹50,000 (on timely repayment) Benefit: 7% interest subsidy For many, this is their first experience with a startup loan by government that builds their credit history. A good credit history eventually builds a good credit score. Check your credit score for free! PM Vishwakarma Scheme For carpenters, blacksmiths, masons, and other skilled artisans, this scheme offers a mix of government business loans, training, and market access. Loan: Up to ₹1 lakh Tools Voucher: ₹15,000 Training: With daily stipend Interest: 5% only Ideal for traditional businesses that want to modernize or scale, especially in semi-urban and rural areas. Summary of Key Points Government business loans offer easy funding with minimal paperwork Most are collateral-free or partially guaranteed by the government Special loan schemes exist for women, SC/STs, artisans, vendors, and startups PM and MSME-specific schemes help build and expand new businesses If you’re looking for a startup loan by government or a PM loan scheme for business, there’s likely one that fits your need

08-11-2023

Personal Loan

How can you get instant personal loan easily in India?

Instant personal loans are a great option for people who need money urgently. A personal loan is granted without any security and can be used for any expense. Also, the entire procedure can be conducted online if preferred. You can apply for an instant personal loan, get it approved, and quickly receive funds in your account. Unlike other types of loans, the borrower does not have to arrange a guarantor or provide any security. All you need is to meet the eligibility criteria the lender sets and keep the required documents ready. You can choose any lender that fits your requirements and expectations. Banks and NBFCs provide various loan products at competitive interest rates and flexible repayment options. How to Choose the Right Instant Personal Loan Lender When you decide to apply for a personal loan, there are many factors that you should consider. This includes the interest rate, tenure, and other charges, such as processing fees charged by the lender. Sometimes, lenders provide additional benefits such as free credit score monitoring or access to exclusive deals on insurance policies. As with any product, the right lender will not only check your eligibility and offer you a personal loan but also help you understand the terms and conditions of the loan. The process should be smooth so that there are no hassles later on. When choosing your lender, it is important to consider their reputation. Determining if they offer their personal loan services online is also important. Some may prefer to visit the nearest bank branch, but others may feel more comfortable applying for a personal loan online. So, check what personal loan services the bank or financial institution offers. The bottom line is that finding a lender who understands your needs and provides a personalized service is important. Check The Details Of The Personal Loan To ensure that you are financially able to repay your loan, you should check the details of your loan. It is crucial to carefully figure out the correct amount you want to borrow, which should be enough to meet your needs but not too much that you cannot pay it back. Next, check the interest rate and the tenure. This will determine how much you will pay in EMIs. Other details, such as penalties if you miss a payment, are also important. If there are penalties, determine what they are and how much they will cost you. This depends on the lender, so conduct thorough research before applying for your instant personal loan. Eligibility Requirements For An Instant Personal Loan Lenders will ask you to provide them with certain information to determine your eligibility. You will be asked about the purpose of applying for an instant personal loan and what you intend to do with the borrowed funds. Depending on your requirements, you can compare different types of personal loans in India and choose the best one for yourself. Checking your eligibility before applying for a loan will also help you save time and effort. To know whether you are eligible for a particular type of personal loan, make sure you meet the following requirements: A credit score above 750 Aged between 21 to 67 years A resident of India Identity proof documents (such as an Aadhaar card, driver’s license, passport, etc.) Residence proof documents (such as a voter’s ID, Aadhaar card, etc.) Should be salaried or self-employed (for at least 6 months) Documents Required For An Instant Personal Loan You must submit certain documents to get approval for an instant personal loan. For fast approvals, ensure all your documents and your application form are ready for submission. All your documents need to be official and must be legible. If there’s any discrepancy in the information on the application form and the documents, it could lead to rejection. The documents required for an instant personal loan include: Identity proof documents (such as a passport, voter’s ID, driving license, Aadhaar card, etc.) Address proof documents (such as utility bills, credit card statements, driving licences, voter IDs, passports, etc.) Bank statements for the previous 3 months Two latest salary slips (salaried) ITR with the balance sheet (self-employed) Also, make sure you do not submit multiple applications simultaneously for different loans, as this could also cause delays in processing your request. Application Process For An Instant Personal Loan Applying for an instant personal loan is simple. Banks and other financial institutions have made the process easy, and it can be done either in person or online. To apply for an instant personal loan, fill out the application form, which is available at the nearest branch of your lender or online. Submit or upload all the requested documentation, and then submit your application form and all supporting documents. Once your documents have been verified and your loan has been approved, the money will be sent to your bank account quickly. Since you will provide your bank account details, the lender will send the money directly to your account. You can then use the money from your instant personal loan for your various needs. [B-02] Conclusion An instant personal loan is one of the best ways to access urgently needed finances. Since personal loans are unsecured, the borrower does not have to offer any assets as collateral. Therefore, the application and approval process is fast and smooth. Before applying for an instant personal loan, it is crucial to research different lenders and find the one with the best personal loan interest rate and tenure for you. Once you have selected your lender, the application process can be carried out in person or online, and you will get access to the funds you need within a few hours or days of submitting your application.

08-11-2023

Home Loan

Loan against property - Who can be eligible?

Business owners may readily apply for a loan against property on the websites of financial institutions. Most loan applications result in an instantaneous deposit of borrowed cash. Step 1: Fill these details in the online form: your name, home address, birth date, and other personal details. Step 2: After filling out the first application, you will be asked to provide details about your income. These are used to offer suitable business loan options based on your credit history. Step 3: After a loan application is submitted, a financial institution representative contacts the borrower. They collect documentation verifying the borrower’s identity and property. After this, you will find out if your application for a property loan secured by real estate has been granted. [B-01] Here are five reasons to start a business with a secured loan. There are high costs associated with starting a business. So, securing a loan against property is an attractive option. Here are five compelling reasons for securing a company loan against property: 1. Basic Requirements for Participation As you saw, filling out an application for a loan secured by real estate is easy. Just like that, completing the requirements for approval is similarly uncomplicated. As a beginner, you will appreciate the efficiency of these techniques. It is good to have quick access to finances as you will incur several costs. 2. Application Flexibility Setting up new business costs include renting or buying office space, buying office furniture and supplies, advertising, recruiting employees, buying equipment, and paying taxes. A loan against property secured by the new company’s property can be quickly redirected to meet the most immediate need. Starting a business might be much less complex when a lender is not involved. 3. Flexible Repayment Schedule Maximizing profits to repay a debt with a more forgiving repayment plan will be less important. Take a loan against property repayment schedule of up to 20 years. With this, you can focus on growing your business without financial stress. 4. Lowest Interest Level You’ll have a far lower debt-to-income ratio because your lender is providing you with a loan against property. The interest rates associated with a loan against property for company owners are lower than other loan types like personal and business loans. 5. The Highest and Best Use of Property Real estate is a great long-term investment. But there are ways to maximize your returns. You can qualify for a larger loan at a cheaper interest rate if you use the property as collateral. Launching a firm requires many things. They can add up in cost for first-time entrepreneurs. Taking out a loan against your home will allow you to accomplish all this without going into serious debt. What are the steps to getting a company loan backed by real estate? Business owners may readily apply for a loan against property on the websites of financial institutions. Most loan applications result in an immediate deposit of borrowed cash. Step 1: Fill these details in the online form: your name, home address, birth date, and other personal details. Step 2: Fill out the first application and then provide the details about your income. Then, you will be offered suitable loan options based on your credit history. Step 3: After a loan application is submitted, a financial institution representative will contact the borrower to collect documentation verifying the borrower’s identity and property. Following these steps, you will find out if your application for a loan against property secured by real estate has been granted. The loan proceeds will be sent to your account after approval. What is a startup loan secured by real estate? There are many differences between a personal loan and a loan against property secured by real estate. Read on for more about the loan’s characteristics and how they could aid in the start of your firm. Commercial property equity loans are cheaper than unsecured loans for business purposes. Taking into account the massive outlay of capital required to launch a corporation, this differentiation might be decisive. Company owners who apply for loans backed by property do not have to relinquish legal or equitable title to the property to the lending organization. You may have pledged the home as collateral for a business loan. But, you and your family are welcome to continue living in the home. Securing a loan against a startup company’s property is simpler than securing a personal loan or other types of loans. You are using the property as collateral. Suppose you fail to repay the loan according to the terms and schedule. Then, your lender may rest assured that they will get the property. Now it’s far less of a hassle to secure a loan against property to launch your company. It’s possible to borrow a significantly larger sum of money against the value of your home. You may not be able to do so with a personal loan or other unsecured loans. For instance, many investors may pool up to Rs. 3.5 crore to provide mortgage loans backed by real estate. The loan-to-value ratio varies from 75% to 90% of the property’s estimated fair market value. Being aware of the benefits is useful in making a well-informed choice on whether to use a real estate-secured loan for startup capital. Anyone, whether self-employed or on a salary, can get a loan against property and keep it even while making payments. You may use the property as collateral to secure financing for your firm. Or, you can keep living there and use the equity for something else. [B-02] Conclusion A loan backed by real estate is the best option for startup owners. Some reasons include the generous repayment terms, competitive interest rates, and the easy application process. Get a loan against your property from Piramal finance if you want to start your own company. Visit our website to learn more about the benefits of a loan against property from Piramal Housing Finance.

08-11-2023

Business Loan

All About Business Loan Brokers and Do You Need One?

If you are busy with your daily business operations or have started a new business and need the best financial options, you should look for a business loan broker. A business loan broker is a middleman whose job is to help you get financial support from the best lenders for your business. Business loan brokers act as coordinators in getting the lender for your business. With their knowledge of the industry, working experience, and relationships with different lenders, a business loan broker can successfully get you a very competitive offer from a lender. [B-01] Business loan brokers work closely with various lenders, so they can easily suggest the perfect lender for your business. Business financial brokers send your proposal to the lenders, and once the lender approves it, that lender will take care of your financial needs. Few business loan brokers will charge fees from the broker, while others work on the percentages they get from the lender. But, the question is: do you need a business loan broker? Continue reading to discover the same as we unfold the nuances of this professional service. How Can a Business Loan Broker Help You? Before you know if you need a business loan broker, it is imperative to know how a business loan broker can help you: A business loan broker can help you understand the complete process of a business loan. The person can also help you find the best interest rates in the market. The person can also help you get faster funding and more time for your newly established business. Your chances of getting loan approval are high due to the experience of a loan broker in the industry and solid industrial ties. A business loan broker can negotiate with the lender to get the best loan offer according to your needs. Types of Business Loan Brokers There are mainly three types of business loan brokers: Commercial loan brokers: They assist in multiple types of loans. They can offer you a variety of options from which to choose. Start-up loan brokers: If you are struggling to get financial support for your start-up, these brokers are best for you. They work specifically with lenders who do not require a particular time in business to lend the money. Equipment financing broker: If you want to take money by collateralizing the equipment in exchange for the money, these brokers can help you. How Do I Find a Business Loan Broker? You can choose a business finance broker according to your needs. You can do so using online platforms. You can look at ratings and reviews about the business loan broker to determine its legitimacy. You can also get a good business loan broker through the referrals of your fellow business owners. You can also contact the local business organisation in your area to get a reputable business broker. But these are time-consuming ways and require you to do extensive research. Piramal can provide you with the best business loan brokers in the market with just a few clicks. You can visit our website to explore your options. How Do I Choose a Business Loan Broker? To choose a business loan broker that can assist in getting financial support from the appropriate lender for your business, you must: Know the number of lenders the particular loan broker partners with. Know their experience in the industry, as more experienced brokers can get you your desired lender with minimal effort. Choose according to the time you can give a business loan broker based on your commitments and needs. Do You Need a Business Loan Broker? It would be best if you chose a business loan broker: If you want to find the best lender without investing much time in research, or if you are a start-up or have a low credit score and are having difficulty finding the desired lender, you should seek the assistance of an intermediator. If you are unsure which lender will be best for you or want to know inside details like processing time and criteria based on which lenders work, you must opt for a business loan broker. If you are applying for a business loan for the first time and want to save the time required to know the application submission process, in that case, a business loan broker can help. You can hire a business loan broker if you need to fast-track your loan process. You can visit the Piramal Finance website and explore various options there as well. Business Loan Broker Alternatives You might have a bad experience with business loan brokers in your region. So, is there an alternative? Small business owners who can handle their business loan application alone might not need a broker. These businessmen can use a business loan marketplace to compare different lenders. However, if you use this method to obtain a business loan, you may require more personal guidance and will most likely miss out on the best offers. You can also reach out to lenders on your own, but in this case, you must have good credit and a solid financial background. That is rare for small-scale business owners; hence, you require a business loan broker. Be Aware!! Now you know whether you need a business loan broker and how to find one. You should also be aware of the following precautions while choosing the loan broker for your business: Some business loan brokers favour a specific lender based on the commission they get. This can cause a conflict of interest that can harm your business. Some business loan brokers charge higher fees, and you need to do market research to find the cheapest and best broker, which might be time-consuming. Hence, always choose business loan brokers from trusted financial partners and websites. [B-02] Key Takeaway Choosing a business loan broker can give you a competitive edge in the dynamic market. You can meet your financial needs faster and make the best decisions for your business. You can also negotiate with the lender regarding loan terms. But all this is possible if you choose an authentic and genuine intermediary for your business loan. If you want to know more about business loan brokers or consult a financial expert, visit the Piramal Finance website.

08-11-2023

Home Loan

Closing your Home Loan? Ensure these tasks are done

Paying off your home loan and becoming a proud homeowner can be an overwhelming experience. While one feels relieved of not having to pay your home loan EMIs anymore, one needs to understand the process to close a home loan. A home loan isn’t closed until your lender shares a letter confirming that it closed from its end. Here’s a list of things one needs to tick off to make sure the home loan is closed and avoid any problems in the future. Let’s take a look: [B-01] Getting together all the original documents. First, make sure you have all of the original documents you gave to the lender when you’re home loan was processed. Some of these papers are: ● Sale Deed ● Deed Loan Agreement ● Power of Attorney Also, make sure that the documents are in good shape when you receive them. You must also check that all the pages of the agreements are intact and none of the pages is missing. If a document is missing, you should ask your lender for it. Getting the “No Dues” Certificate A “No Dues Certificate” is one of the most important documents, which is issued by the lender and needs to be collected after paying off a loan. A No-Dues Certificate says that you have paid all of your debts. The lender does not have any rights on the property anymore. The NDC must include information like: ● address of the property ● names of the customers ● loan account number ● loan amount ● dates when the loan started and when it ended. It is recommended that you make copies of the NDC to make sure that things go smoothly in the future. NDC is required at a time when one wishes to sell off the property. Removal of a Lien on the Property A lien gives the lender the right to your property until all of the debt has been paid. Liens also keep you from selling the property. Removing liens is an important part of the home loan closing process. To complete this task, you will need to go to a registrar’s office with an employee. bureau metre Once a home loan is paid off, apply for the updated non-encumbrance certificate. A non-encumbrance certificate is a legal document that has detailed records of all financial transactions, which happened with the property. The non-encumbrance certificate must show that the home loan is paid off. Changes to credit scores After you pay off a loan, your credit report needs to change. It takes about 20 to 30 days for a borrower’s credit score to get updated. Make sure you get a credit report and talk to your lender if your credit score isn’t updated. Getting Bank Statements for Paying Back a Loan To avoid problems in the future, it is important to get all loan payment statements from the bank. Keep in mind that if you don’t get all of the statements from the bank after paying back the loan, the loan is not over yet. Getting all the checks with dates from the past When applying for a house loan, most banks ask for post-dated checks in case any monthly EMIs are missed. If you haven’t missed any EMIs, collect the post-dated checks from the bank once the loan is paid off. Advice for people who want to take a loan The process of closing a Home loan is as important as any other part of a home loan. Therefore, make sure all of the above steps are followed while a home loan is closed. How to close your account when your home loan is paid off 1. Write a letter to the bank and ask them to send back the original documents you gave them when you got the home loan. 2. If you need copies of invoices, include them in the letter. 3. The bank should respond within 7 business days. 4. The lender will give you back your original documents and send you a letter saying there are no more payments to be made. 5. The bank will also give you a NOC that says it no longer has the right to your property. 6. If the bank has put a lien on your property. you will need to go to the registrar’s office with the NOC and a bank representative to get it removed. 7. If the bank hasn’t put a lien on your property, it will return the title deeds right away. [B-02] Conclusion Even though paying off a home loan gives you a sense of relief and financial security, it is important to finish all of the paperwork and procedures with your bank meticulously. Don’t forget that your loan isn’t over until your bank sends you a NOC letter.

08-11-2023